Stock market gains 592 points on rate cut hope

KARACHI: The stock market gained 592 points on Thursday due to broad buying activity on hopes of rate cut in the upcoming monetary policy announcement.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,546 points as against 30,955 points showing an increase of 592 points.

Analysts at Arif Habib Limited said that the market performed well today, with across the board buying activity.

E&P, Banks and Cement contributed positively to the points table that showed a jump of 892 points during the session.

Major reason for general positivity seems to be expectation of rate cut, which had an indication from recent auction of treasury bills that saw yield curve sliding further.

Market on close, however, saw attrition of ~350 points closing the index to +553 points (unadjusted). E&P stocks saw reversal in prices by end of session. Cement sector led the volumes with 31 million shares, followed by Technology (26.4 million) and Power (22.9 million). WTL led the volumes with 18.3 million shares, followed by KEL (11.7 million) and MLCF (11.1 million).

Sectors contributing to the performance include Banks (+179 points), Fertilizer (+111 points), Cement (+75 points), Power (+51 points) and E&P (+51 points).

Volumes increased from 99.6 million shares to 185.8 million shares (+86 percent DoD). Average traded value also increased by 64 percent to reach US$ 51.9 million as against US$ 31.6 million.

Stocks that contributed significantly to the volumes include WTL, KEL, MLCF, HUBC and FCCL, which formed 33 percent of total volumes.

Stocks that contributed positively include BAHL (+49 points), LUCK (+48 points), FFC (+42 points), ENGRO (+41 points) and PPL (+39 points). Stocks that contributed negatively include MUREB (-10 points), KTML (-4 points), HASCOL (-2 points), AGIL (-2 points), and SML (-1 point).

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